For audio on DVD's, you will want to you the 950 to do the digital processing, so use either the coax or optical digital input. While I've heard that coax is potentially somewhat superior to optical for digital audio, I think it's safe to just go with whichever is available (depending on your DVD player, you may not have a choice).

For video, component is the best way to go. If the DVD player is the only component video source, I would recommend going directly from DVD player to TV rather than using the 950's component video switching (simplest possible signal path, and you'll have to switch the TV's input either way). There are a few other devices out there that support component video signals -- HDTV receivers and some of the latest generation of game consoles (PS2, XBox) come to mind. S-Video is the next best video interface, but with the Grand \Vega there's no question that you've got a component input. Composite is the last in line.

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gonk -- Saloon Links | Pre/Pro Comparison Chart | 950 Review

Gonk,

Thanks for the clarification for dvd audio/video hook ups.
Sure is interesting how a $2,000 budget grows!! I joked with my wife last nite that I found the speaker cables that I need and they were only ~$600....